Uxin (UXIN) Q4 2025 Earnings Call Transcript

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DATE

Thursday, December 18, 2025 at 8:00 a.m. ET

CALL PARTICIPANTS

• Founder, Chairman & CEO — Dai Kun
• Chief Financial Officer — Feng Lin

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TAKEAWAYS

• Retail Transaction Volume -- 14,020 units, up 134% year over year, representing the sixth consecutive quarter of year-over-year growth above 130%.
• Inventory Turnover -- Maintained at approximately 30 days despite significant expansion in inventory.
• Net Promoter Score (NPS) -- 67 for the quarter, sustaining a level of 65 or above for six consecutive quarters.
• Gross Margin -- Rose to 7.5%, the highest in the past three years, up from 7% in the same quarter last year and 5.2% the previous quarter.
• Retail Revenue -- RMB 820 million, up 84% year-over-year.
• Average Selling Price (ASP) -- RMB 58,000, compared to RMB 59,000 in the prior quarter and RMB 74,000 in the same period last year, reflecting a shift toward a more affordable inventory mix.
• Wholesale Transaction Volume -- 1,884 units, representing an 81% increase year-over-year.
• Total Revenue -- RMB 879 million, a 77% year-over-year increase.
• Adjusted EBITDA Loss -- RMB 5.3 million, narrowed by 43% compared to the prior year.
• Superstore Expansion -- Completed three new openings (Jinan, Wuhan, Zhengzhou) in 2025; now operating five superstores in total.
• Wuhan Superstore Performance -- Expected to reach nearly 1,800 retail units in December and approach 10% local market share.
• Zhengzhou Superstore Performance -- Expected to achieve approximately 900 retail units in December with market share nearing 5%.
• Strategic Partnerships -- Announced with Tianjin, Guangzhou, and Yinchuan local governments for new superstore projects, each supporting a capacity of over 3,000 vehicles.
• 2026 Expansion Pipeline -- Plans to open four to six additional superstores, entering a phase of accelerated nationwide growth.
• Pricing Technology -- Implements a machine learning-based system to set real-time competitive prices for each vehicle.
• Efficiency Model -- Operates an integrated factory–logistics–retail model for end-to-end control.
• Q4 2025 Outlook -- Retail transaction volume expected to exceed 18,500 units, implying year-over-year growth above 110%.
• Full-Year 2025 Guidance -- Retail transaction volume anticipated to surpass 50,000 units, indicating growth of over 130%.
• Future Gross Margin Target -- Long-term goal is approximately 10%, with Xi'an and Hefei stores already approaching this level.
• New Superstore Ramp-up -- Anticipates breakeven for a new superstore with 3,000-unit capacity in about nine months; profitability expected to mature at 18–24 months as inventory reaches planned capacity.
• Q4 2025 Revenue Guidance -- Total revenue projected to exceed RMB 1.15 billion.

SUMMARY

Management reported that learnings from earlier superstore launches are accelerating ramp-up efficiency for new locations. Executives highlighted that a stabilized new car price environment and improved store operating metrics are key contributors to recent gross margin gains. Regional superstore performance, such as notable market share progress in both Wuhan and Zhengzhou, was specifically cited as a lever for local scale and revenue growth. Partnerships with local governments were revealed as the principal mechanism for upcoming geographic expansion, with each new site supporting significantly higher inventory capacity.

• Dai Kun described the company’s transition into nationwide expansion as enabled by “more precise pricing, higher customer satisfaction, and superior operating efficiency.”
• Management explicitly connected future gross margin improvement to “Policies aimed at reducing excessive competition” and to increased penetration of value-added services.
• Leadership asserted that transaction data from new locations enhanced pricing accuracy, reducing errors and loss-making vehicles.
• Management contrasted their mostly offline sales strategy versus Carvana’s online-only channel, highlighting offline retail as the preferred model for Chinese consumers seeking test-driving experiences.

INDUSTRY GLOSSARY

• Superstore: Uxin’s large-format, offline retail facility designed for high-volume, end-to-end used vehicle transactions, including inspection, reconditioning, and direct consumer sales.
• Net Promoter Score (NPS): A customer satisfaction and loyalty metric measuring respondents’ willingness to recommend a company’s services to others, with higher scores indicating stronger advocacy.
• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted to exclude certain non-recurring or non-operational items.
• Average Selling Price (ASP): The mean revenue earned from each retail vehicle sold within a specific period.

Full Conference Call Transcript

Dai Kun (Founder, Chairman & CEO): [interpreted] Hello, everyone. In the third quarter of 2025, we continue to build strong growth momentum. Retail transaction volume reached 14,020 units, representing a 134% year-over-year increase and marking the sixth consecutive quarter of year-over-year growth above 130%. Despite a significant expansion in inventory, our inventory turnover remained at around 30 days. Customer satisfaction also remained at an industry-leading level; our Net Promoter Score (NPS) was 67 this quarter, sustaining a level of 65 or above for 6 consecutive quarters. At the same time, profitability continued to improve with gross margin increasing to 7.5%, the highest level we have achieved in the past 3 years.

The expansion of our superstore network has also continued to progress. Earlier this week, our Jinan Superstore officially commenced operations. Together with the Wuhan and Zhengzhou Superstores that opened earlier this year, we have now completed all 3 new superstore openings planned for 2025. Our Wuhan Superstore is expected to reach nearly 1,800 retail units in December with a local market share approaching 10%. Meanwhile, our Zhengzhou Superstore is already expected to achieve approximately 900 retail units in December with market share nearing 5%. With these additions, we now have 5 superstores in operation.

In addition, we have announced strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan to jointly invest in and operate new superstores. Each project is designed to support a capacity of more than 3,000 vehicles. We plan to open 4 to 6 additional superstores in 2026, marking a transition into a phase of accelerated nationwide expansion. We believe Uxin has established a clear path to scaling, driven by more precise pricing, higher customer satisfaction, and superior operating efficiency. Our machine learning-based pricing system ensures each vehicle is competitively priced in real time, and our fully integrated factory-logistics-retail model enables end-to-end control.

For the fourth quarter, we expect retail transaction volume to exceed 18,500 units, representing year-over-year growth of more than 110%. For the full year 2025, we expect to surpass 50,000 units, reflecting growth of more than 130%. With that, I'll turn the call over to our CFO, John.

Feng Lin (CFO): [interpreted] Thank you, D.K. In the third quarter, retail revenue totaled RMB 820 million, up 84% year-over-year. The Average Selling Price (ASP) for retail vehicles was RMB 58,000, compared to RMB 59,000 in the prior quarter and RMB 74,000 in the same period last year. While ASP declined as we shifted toward a more affordable inventory mix, the strong growth in transaction volume more than offset this. We expect ASP to remain relatively steady in the near term.

Turning to our wholesale business, transaction volume was 1,884 units, an 81% increase year-over-year. Total revenue for the quarter reached RMB 879 million, representing a 77% increase year-over-year. Gross margin for the quarter was 7.5%, up from 7% a year ago and 5.2% in the prior quarter. This improvement was primarily attributable to the easing of price competition in the new car segment and the Wuhan Superstore moving beyond its start-up phase. Adjusted EBITDA loss narrowed significantly to RMB 5.3 million, a 43% reduction year-over-year. Looking ahead to the fourth quarter of 2025, total revenue is expected to exceed RMB 1.15 billion. We are now ready to begin the Q&A session.

Wenjie Dai (SWS Research): [interpreted] Congratulations on the 3-year high in gross margin. How does management view the sustainability of this level, and what factors could drive further improvement?

Unknown Executive: [interpreted] There are two main drivers: first, new car pricing has stabilized; second, the profitability of the Wuhan Superstore has improved significantly. Looking ahead, we believe there is still substantial room for expansion. Policies aimed at reducing excessive competition should keep prices stable. Additionally, our data-driven pricing capabilities are reducing errors and loss-making vehicles. Finally, value-added services have significant penetration upside. Our long-term target gross margin is around 10%, and our existing Xi'an and Hefei stores are already approaching this.

Fei Dai (TF Securities): [interpreted] Following the opening of Zhengzhou, ramp-up seems faster than Wuhan. What initiatives drove this? Also, how long do you expect new superstores to take to reach stable operations?

Unknown Executive: [interpreted] Zhengzhou benefited directly from what we learned in Wuhan regarding construction, inventory build, and sales ramp-up. Furthermore, our larger pool of transaction data has improved our pricing capability. For a standard new superstore with a 3,000-vehicle capacity, we expect it to reach breakeven in about 9 months. We expect inventory to reach planned capacity in 18 to 24 months, at which point profitability should reach a mature level.

Fei Dai (TF Securities): [interpreted] Carvana recently surpassed $100 billion in market cap. Could you comment on the similarities and differences between their model and Uxin’s?

Unknown Executive: [interpreted] The biggest difference is the sales channel; Carvana is online-only, while Uxin uses offline superstores for over 70% of sales. In China, cars represent a larger share of household assets, so consumers prefer in-store experiences and test drives. Similarities include the own-inventory model with self-operated reconditioning and a focus on precise pricing for high turnover. Carvana sells 500,000 units annually; we sell 50,000. We are confident we can reach Carvana's current volume within 4 to 5 years by sustaining over 100% year-over-year growth.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.

Unknown Executive: Thank you all for participating. We look forward to reporting to you soon.

Operator: The conference has now concluded. Thank you for attending. You may now disconnect.

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